Women in the Supply Chain

Women in the Supply Chain is a key topic for the People area of action within the Green Products pillar.

Effect

As a leading international trade and tourism company, the business activities of the REWE Group may have a wide range of social impacts. The company sources a large number of products via supply chains from all over the world. This includes countries where the governmental framework conditions for the protection of human rights are often inadequate and where applicable labour and social standards are disregarded. Women often work at the beginning of global supply chains and are in many cases excluded from economic opportunities and advantages of international trade. They are therefore a focus for the REWE Group. The company has analysed the issue as particularly sensitive in all relevant supply chains and countries (see sections Strategic Approach and Social Aspects in the Supply Chain) and campaigns for women's rights and economic participation in many ways. Particularly in cooperation with suppliers and through standards or via on-site training programmes, a company such as the REWE Group can make a positive contribution to this issue.

Principles

The Guideline on Sustainable Business Practices applies to all business relationships of the REWE Group. It includes fair treatment of employees and the prohibition of discrimination.

Moreover, in October 2022, the REWE Group updated its Supplier Code of Conduct for compliance with its corporate due diligence in the supply chain. It applies as of 1 January 2023 and outlines the minimum standards that suppliers must observe and comply with when doing business with companies of the REWE Group. Furthermore, it takes into account the requirements of the German Act on Corporate Due Diligence Obligations in Supply Chains (LkSG).

In the reporting period, the REWE Group has also updated its Declaration of Principles which shows the company's strategy for respecting human rights and environmental concerns. The REWE Group specifically addresses the risks that arise in the supply chain with regard to the People and Environment areas of action through systematic supply chain management. For instance, the REWE Group is committed to strengthening human rights and preventing human rights violations. This commitment applies to its own business operations as well as to the global supply and value chains.

The REWE Group joined the UN initiative Women’s Empowerment Principles in 2020 and is committed to the targeted strengthening of women in the company and in society.

In 2021, the REWE Group has published the Guideline on Women in the Supply Chain for its private label products, which are distributed by REWE and PENNY in Germany and toom Baumarkt DIY stores, in order to specify its requirements for the promotion and protection of women. It includes objectives and measures to strengthen women’s rights along global value chains and to promote their economic independence and participation.

Strategic Approach

In its strategic approach, the REWE Group followed a four-stage process with REWE and PENNY in Germany and toom Baumarkt DIY stores, analogous to its Approach for More Sustainable Supply Chains: assortment and risk analysis, derivation of focus topics, implementation of measures, monitoring and reporting.

In 2020, the REWE Group conducted a risk analysis for the private label products of REWE and PENNY in Germany and toom Baumarkt DIY stores, to assess which negative impacts of human rights violations women are particularly exposed to – and in which pertinent sectors and countries the risks for women are particularly high. One emphasis was on the focus raw materials identified in the Guideline on Fairness. Furthermore, the respective proportion of women in the sectors and countries considered was determined as far as data was available.

As a result, three risk fields were identified: precarious working conditions and low wages, occupational safety and health risks in the work place and lack of economic participation – for example, because women are often not involved in decision-making processes or legally restricted when acquiring property. Moreover, it can be noted: Women are present in all supply chains and risks exist everywhere – albeit to different extents.

In addition, the REWE Group held a fairness dialogue in 2020 with various stakeholders from civil society. The results of the dialogue, as well as those of the risk analysis, form the basis for formulating objectives to counteract negative impacts on women's human rights.

Responsibility and Resources

Implementation of strategies and measures regarding Women in the Supply Chain is the responsibility of dedicated teams and departments in the respective sales lines. For more information, please refer to Management Approach Green Products. When implementing human rights due diligence in the supply and value chains, the Corporate Responsibility Departments of the sales lines and the procurement organisations are of particular importance.

Implementation

In order to achieve its objectives, the REWE Group follows a holistic approach for private label products sold at REWE and PENNY in Germany and toom Baumarkt DIY stores, with clear guidelines that serve as orientation for the REWE Group as well as its business partners in the supply chain. As part of this approach, the REWE Group continuously reviews existing measures and adapts them if necessary.

The REWE Group ensures that certified raw materials are processed in its private label products that set essential requirements regarding equal treatment and protection of women, which are checked in audits – for example Fairtrade, Rainforest Alliance, Global Organic Textile Standard (GOTS), Cotton made in Africa, the Roundtable on Sustainable Palm Oil (RSPO), XertifiX and Forest Stewardship Council (FSC®). In addition, all production sites in the first supply chain level from defined risk countries must demonstrate a social audit pursuant to the amfori BSCI or the SA8000 standards as well as SMETA audits. Certifications that are verified through audits already impose significant requirements for equal treatment and protection of women. These requirements include, for example, equal pay for men and women for the same work, the prohibition of gender-specific discrimination or the provision of appropriate training.

Involvement of Stakeholders

The topic of Women in the Supply Chain was rated as particularly relevant by stakeholders in the REWE Group’s Materiality Analysis. They are informed annually about the effectiveness of measures taken via the Sustainability Report and in various dialogue formats (see Stakeholder Dialogue). In addition, the REWE Group exchanges ideas with the standard-setting bodies and other partners in annual strategy meetings. The REWE Group also takes part in consultations with standard-setting organisations with the aim of taking the specific needs of and risks for women into account when formulating the standards. This exchange allows stakeholders to provide important input on the issue.

Customers, suppliers and partners, as well as other stakeholders, can submit their grievances or comments. For this purpose, the REWE Group has established reporting and grievance mechanisms. For more information, please refer to the Compliance section.

Specifically for supply chains, the REWE Group promotes the establishment of effective grievance mechanisms. In this way, the company aims to ensure that grievances in the supply chains, including for women, can be detected. The REWE Group already checks within the scope of audits and certifications whether production sites offer their employees grievance options. REWE Group has developed a systematic process for dealing with grievances (for more information, see Social Aspects in the Supply Chain).

The REWE Group implements various measures and projects to promote the economic independence and participation of women. Selected examples from the reporting year are presented below, sorted thematically by: